- Sales rise to around €5.4 billion in 2015, representing an increase of 37 percent
- Veyance contributes approximately €1.15 billion to total sales
- Fiscal 2016: successful start in a challenging environment
The international industrial and automotive supplier, ContiTech, increased its sales to around €5.4 billion in 2015. This equates to growth of 37 percent. Veyance Technologies Inc., which was acquired at the beginning of 2015, contributed roughly €1.15 billion to sales in total. This represents organic growth of 4 percent.
“We are very satisfied with this result. The currently strong automotive industry in addition to positive performances in some industrial sectors have provided us with momentum. This is enabling us to cushion the continuing decline in mining- and oil-dependent business, which accounts for roughly 18 percent of our sales at present. This demonstrates yet again that our broad portfolio puts us in a strategically strong position,”
explained Hans-Jürgen Duensing, member of the Executive Board of Continental responsible for the ContiTech division, at a press conference held at Hannover Messe 2016.
“2015 was a challenging year, especially for our mining customers. The sector is still experiencing economic difficulties as commodity prices remain extremely low, which has prompted it to cut its capital expenditure by more than half over the past few years. In the third quarter of 2015, this was accompanied by a significant deterioration in the oil industry,” said Duensing, explaining the downward trend in these sectors and emphasizing at the same time that around 51 percent of sales were generated by the growing automotive industry, largely offsetting any fluctuations. „We made a positive start to fiscal 2016, but are still expecting a challenging environment for the current year. We are working consistently and with a heavy emphasis on the objective of improving our return on sales. The restructuring measures we introduced are expected to strengthen our earnings situation in this respect,”
In 2015, ContiTech achieved EBIT of €171 million (previous year: €433 million), the return on sales amounted to 3.2 percent (previous year: 11.0 percent). Before amortization of intangible assets from purchase price allocation (PPA) as well as special effects, earnings for fiscal 2015 came to €388 million. This corresponds to 7.2 percent of sales.
ContiTech posted an increase in the number of employees compared with the previous year. This resulted primarily from the acquisition of Veyance. ContiTech employed 42,648 people at the end of 2015, nearly 10,000 more than just a year ago. Around 8,000 Veyance employees joined the company in February 2015 alone.